CFO and Finance Leadership Center - The CFO will be the future Chief Intelligence Officer as well as most of a company’s data is running through the books some how. It is utmost important that the finance function extends beyond the primary mission to support all other business functions within an organization. Enterprises in all industries and regions can make it a differentiator when they see perceptive finance as a focus area. To learn more follow us on twitter (@SAPAnalytics, @hschliebs).

1. Latest Analytics Solutions from SAP to Empower
the Finance Team – Perceptive Finance
Henner Schliebs
SAP

2. © 2013 SAP AG. All rights reserved. 2
Agenda
Describing the new normal for CFOs
Introducing financial excellence
Elaborating on financial analytics
Experiencing solutions
Wrap-up

3. © 2013 SAP AG. All rights reserved. 3
Increased Globalization
§ Expansion into new markets
§ Global process standardization
§ Localization requirements
Economic Volatility
§ Volatility in markets
§ Decreased stock valuation
§ Slow economic growth
The Realities of the “New Normal” for Finance
Pressure on Margins
§ Profitability by segments
§ Decreased budgets and spending
§ Determination of the cost to serve
Focus on Risk
§ Financial risk and fraud
§ Commodity risk
§ Social sentiment affects brand value
New Business Models
§ Shared services organizations
§ Business partnerships
§ Leveraging big data for decisions
Regulatory Changes
§ Increasing disclosure requirements
§ Country-specific regulations
§ Industry-specific disclosures

4. © 2013 SAP AG. All rights reserved. 4
3xLower finance cost as percentage of
revenue for top quartile organizations
versus bottom quartile organizations
Source: SAP Benchmarking Services
Best Run Finance Organizations have …
76%Higher operating margin where financial
systems provide historical and forward-
looking views into financial and operational
performance
Best Run Companies Can Achieve Financial Excellence

5. © 2013 SAP AG. All rights reserved. 5
And a Greater Role for Finance in Creating Value
Despite a continued focus on cost control,
many CFOs are considering strategies to
grow revenue.
There is also a desire to increase their
involvement in strategic decisions in their
companies.
CFO Global Insights Dec 2010
Deloitte
“
”
Ÿ Cut costs
Ÿ Conserve cash
Ÿ Pay off debt
2008-2009
Ÿ Grow revenues
Ÿ Use cash
Ÿ Optimize costs
2010-2013

6. © 2013 SAP AG. All rights reserved. 6
Agenda
Describing the new normal for CFOs
Introducing financial excellence
Elaborating on financial analytics
Experiencing solutions
Wrap-up

7. © 2013 SAP AG. All rights reserved. 7
Greater Expectations of Finance
Key CFO priorities
InternalExternal
Ensure Regulatory
Compliance and Effective
Risk Management
Deliver Superior Service
at Reduced Cost
Outperform Financial Objectives and
Create Sustainable Value

8. © 2013 SAP AG. All rights reserved. 8
How Finance Can Run Better
Ensure Regulatory
Compliance and Effective
Risk Management
Outperform Financial Objectives and
Create Sustainable Value
Deliver Superior Service
at Reduced Cost
Streamline financial functions and
provide self-service reporting and
analysis
Shorter time to close books
% of time spent of working with the business
Lower cost of finance as % of revenue
Embed a 360° view of enterprise
performance with agile budgeting and
actionable profitability reporting
Superior Return on Capital Employed
(ROCE)
Lower proportion of unprofitable products
and customers
Minimize # earnings warnings
Embedded risk management and
controls from transactional processing
to financial reporting
Lower % revenue at risk
Reduced incidence of penalties
for non-compliance
Minimize risk of financial restatements

9. © 2013 SAP AG. All rights reserved. 9
Real Estate Lifecycle Management
Receivables Management
Invoice to Pay
Travel Management
Shared Services
Our Solutions for Finance
Treasury and Financial Risk
Management
Manage Enterprise Risk
and Compliance
Accounting
and Financial Close
Ensure Regulatory
Compliance and Effective
Risk Management
Deliver Superior Service
at Reduced Cost
Manage Financial
Performance
Outperform Financial Objectives and
Create Sustainable Value
Ÿ Strong cash flow and liquidity
Ÿ Compliant and accurate financial reporting
Ÿ Maximized profitability
SAP’s comprehensive portfolio of applications and end-to-end
processes help you achieve Financial Excellence
Ÿ Reduced cost of finance
Ÿ Partnering with organization to drive
value

10. Achieve Financial Excellence
Ÿ Ensure Regulatory Compliance and
Effective Risk Management
Ÿ Outperform Financial Objectives and
Create Sustainable Value
Ÿ Deliver Superior Service at
Reduced Cost
© 2013 SAP AG. All rights reserved. 10

11. © 2013 SAP AG. All rights reserved. 11
Agenda
Describing the new normal for CFOs
Introducing financial excellence
Elaborating on financial analytics
Experiencing solutions
Wrap-up

12. © 2013 SAP AG. All rights reserved. 12
Improve Financial, Operational, and Managerial Processes
while Driving Profitability and Growth
Manage
Enterprise Risk
and Compliance
Proactively manage
enterprise risk and
compliance at reduced
cost
Accounting and
Financial Close
Provide timely and
accurate financial and
regulatory reporting
Treasury and
Financial Risk
Management
Seize and fund
business
opportunities as
they arise, while
avoiding financial
risks
Collaborative
Finance
Operations
Improve finance
efficiency and
deliver superior
service at reduced
cost
Manage
Financial
Performance
Outperform
corporate financial
objectives and
create sustainable
value
Achieve Financial Excellence
With Financial End-to-End Processes

13. © 2013 SAP AG. All rights reserved. 13
Manage
Enterprise Risk
and Compliance
Proactively manage
enterprise risk and
compliance at reduced
cost
Accounting and
Financial Close
Provide timely and
accurate financial and
regulatory reporting
Treasury and
Financial Risk
Management
Seize and fund
business
opportunities as
they arise, while
avoiding financial
risks
Collaborative
Finance
Operations
Improve finance
efficiency and
deliver superior
service at reduced
cost
Manage
Financial
Performance
Outperform
corporate financial
objectives and
create sustainable
value
FINANCE ANALYTICS
Achieve Financial Excellence
With Financial End-to-End Processes (cont.)
Improve Financial, Operational, and Managerial Processes
while Driving Profitability and Growth

14. © 2013 SAP AG. All rights reserved. 14
Manage Financial Performance
Driving Business Results through Intelligent Finance
Manage
Enterprise Risk
and Compliance
Proactively manage
enterprise risk and
compliance at reduced
cost
Accounting and
Financial Close
Provide timely and
accurate financial and
regulatory reporting
Treasury and
Financial Risk
Management
Seize and fund
business
opportunities as
they arise, while
avoiding financial
risks
Collaborative
Finance
Operations
Improve finance
efficiency and
deliver superior
service at reduced
cost
Manage
Financial
Performance
Outperform
corporate financial
objectives and
create sustainable
value
FINANCE ANALYTICS
Margin
Management
Predictive
Finance
Finance
Intelligence
Embedded
Analytics
HANA live for
Finance
Operational
Finance
Reporting
Drive
Decisions and actions for greater
revenue
Improve
Control and respond to
maximize profitability
Optimize
Refine and tune for long term
sustainability

15. © 2013 SAP AG. All rights reserved. 15
Accounting and Financial Close
Driving Business Results through Intelligent Finance
Manage
Enterprise Risk
and Compliance
Proactively manage
enterprise risk and
compliance at reduced
cost
Accounting and
Financial Close
Provide timely and
accurate financial and
regulatory reporting
Treasury and
Financial Risk
Management
Seize and fund
business
opportunities as
they arise, while
avoiding financial
risks
Collaborative
Finance
Operations
Improve finance
efficiency and
deliver superior
service at reduced
cost
Manage
Financial
Performance
Outperform
corporate financial
objectives and
create sustainable
value
FINANCE ANALYTICS
Finance Intelligence Embedded Analytics HANA live for Finance Operational Finance Reporting
Control
Compliance and transparency
Execute
Speed and efficiency
Analyze
Insight for better decisions

16. © 2013 SAP AG. All rights reserved. 16
Treasury and Financial Risk Management
Driving Business Results through Intelligent Finance
Manage
Enterprise Risk
and Compliance
Proactively manage
enterprise risk and
compliance at reduced
cost
Accounting and
Financial Close
Provide timely and
accurate financial and
regulatory reporting
Treasury and
Financial Risk
Management
Seize and fund
business
opportunities as
they arise, while
avoiding financial
risks
Collaborative
Finance
Operations
Improve finance
efficiency and
deliver superior
service at reduced
cost
Manage
Financial
Performance
Outperform
corporate financial
objectives and
create sustainable
value
FINANCE ANALYTICS
Commodity Risk
Analytics
Embedded Analytics HANA live for Finance Finance Intelligence
Operational Finance
Reporting
Control
Seamless End-to-End
Compliance
Execute
Agility with Simplicity
Predict
Instant Insight to Action

17. © 2013 SAP AG. All rights reserved. 17
Collaborative Finance Operations
Driving Business Results through Intelligent Finance
Manage
Enterprise Risk
and Compliance
Proactively manage
enterprise risk and
compliance at reduced
cost
Accounting and
Financial Close
Provide timely and
accurate financial and
regulatory reporting
Treasury and
Financial Risk
Management
Seize and fund
business
opportunities as
they arise, while
avoiding financial
risks
Collaborative
Finance
Operations
Improve finance
efficiency and
deliver superior
service at reduced
cost
Manage
Financial
Performance
Outperform
corporate financial
objectives and
create sustainable
value
FINANCE ANALYTICS
Finance Intelligence Embedded Analytics HANA live for Finance Operational Finance Reporting
Control
Insight to Action
Transform
Drive business value
Deliver
Excellence in Finance

18. © 2013 SAP AG. All rights reserved. 18
Manage Enterprise Risk and Compliance
Driving Business Results through Intelligent Finance
Manage
Enterprise Risk
and Compliance
Proactively manage
enterprise risk and
compliance at reduced
cost
Accounting and
Financial Close
Provide timely and
accurate financial and
regulatory reporting
Treasury and
Financial Risk
Management
Seize and fund
business
opportunities as
they arise, while
avoiding financial
risks
Collaborative
Finance
Operations
Improve finance
efficiency and
deliver superior
service at reduced
cost
Manage
Financial
Performance
Outperform
corporate financial
objectives and
create sustainable
value
FINANCE ANALYTICS
Fraud Management Embedded Analytics HANA live for Finance Finance Intelligence
Operational Finance
Reporting
Assess
Seamless End-to-End
Assessment
Execute
Agility with Simplicity
Decide
Instant Insight to Action

19. © 2013 SAP AG. All rights reserved. 19
Agenda
Describing the new normal for CFOs
Introducing financial excellence
Elaborating on financial analytics
Experiencing solutions
Wrap-up

20. © 2013 SAP AG. All rights reserved. 20
New Technologies Help CFOs Better Address Their Challenges
MobilityCloudIn-Memory
FINANCE ANALYTICS

21. © 2013 SAP AG. All rights reserved. 21
Empowering More Efficient Finance with SAP on HANA
The Most Modern Platform for Real-Time Financial Excellence
Real-Time Financial
Close
Real-Time
Finance
Operations
Real-Time
Treasury
Management
Real-Time
Compliance
Real-Time
Performance
Management

22. © 2013 SAP AG. All rights reserved. 22
Mobile Finance Is Already a Reality Today
Payment
approvals
Manage departmental spend
Customer credit and
payment information
Dashboard analysis,
including net margin
Travel expenses
Approve system access
Manage KPIs and
strategic initiatives

23. © 2013 SAP AG. All rights reserved. 23
Where to Find More Information
Analytics applied to Finance: www.sap.com/appliedanalytics
Experience it yourself at our new CFO and Finance Leadership Center by visiting:
www.sapcfo.com
And subscribe to the monthly newsletter:
www.sap.com/finance-newsletter
Follow us: https://twitter.com/sapanalytics
Follow me: https://twitter.com/hschliebs

24. Thank You!
Contact information:
Henner Schliebs
Analytics Solution Marketing
henner.schliebs@sap.com
@hschliebs

25. © 2013 SAP AG. All rights reserved. 25
Net Margin Analysis (HANA / Non-HANA)
Current Customer Situation
Ÿ No chance at identifying which customers and products are destroying your profit
Ÿ Difficult determining which process costs can be reduced
Ÿ Hard analyzing profitability impacts consistently across your organization
Ÿ Lack of rebalancing product mix to achieve higher profitability
Description
Ÿ SAP Net Margin Analysis provides pre-built and customizable dashboards and
reports to analyse net margin and cost to serve across dimensions
Value Proposition
Ÿ Better manage and reduce process costs
Ÿ Increase margins by segmenting your customers, products, sales territory, sales
channel based on the impact they have on profitability
Ÿ Increase revenues by identifying the amount of monthly revenue that is “left on the
table” due to customers with net margin below the customer segment average
Outcome Opportunity
Ÿ Improve your revenues
Ÿ Reduce opportunity costs and profit-destroying customers
Ÿ Manage and optimize margins
SAP BusinessObjects BI solutions
SAP Profitability and Cost Management
SAP Predictive Analysis
SAP Net Margin Analysis

26. © 2013 SAP AG. All rights reserved. 26
Predictive Finance (HANA/Non-HANA)
Current Customer Situation
Ÿ Lacking sophisticated, forward-looking capabilities
Ÿ No support for data mining and predictive modeling for financial measures
Ÿ Weak support for operational departments in regards to financial impact analysis
Ÿ Needing a solution to support cash flow optimization
Description
Ÿ Predictive Finance is a solution that helps the finance department uncover
potential improvements to the company’s performance by delivering rich data
mining and predictive modelling capabilities to business users
Value Proposition
Ÿ Reach your business goals faster by turning dormant data into new opportunities
Ÿ Stay agile and gain a competitive edge with efficient forecasting and planning
Ÿ Solve problems before they happen by exposing hidden risks and hazards
Outcome Opportunity
Ÿ Improve your planning processes with advanced analytics to take action before
gaps come up
Ÿ Focus on the most profitable areas to increase margins with decision support
Ÿ Predict your most influential B/S and P/L positions with sophistication to
outperform your goals
SAP Predictive Analysis
SAP Lumira
SAP CO-PA Accelerator
SAP BI Suite

27. © 2013 SAP AG. All rights reserved. 27
Finance Intelligence (HANA/Non-HANA)
Current Customer Situation
Ÿ Official reporting processes are not flexible and require IT for changes
Ÿ Ad hoc analyses are cumbersome
Ÿ Hard to include non-Finance data in analyses to support operations
Description
Ÿ The solution provides business users in financial departments with the tools to
easily visualize any kind of data from any source without the need of IT expertise.
Merging data sets, sharing models with colleagues and even external constituents,
and showing results rather than excel tables make it a must for every employee.
Value Proposition
Ÿ Ad hoc visualizations in seconds speed up decision making processes and help in
urgent situations to prevent loss of funds
Ÿ Streamline decision making by taking out the IT perspective to operate more
efficiently
Outcome Opportunity
Ÿ Flexible financial analyses and support for operations
Ÿ Collaborative finance crossing departmental borders makes the organization aware
of financial impact of decisions
SAP BusinessObjects BI solutions
SAP Lumira
SAP Explorer

28. © 2013 SAP AG. All rights reserved. 28
Embedded Analytics (Non-HANA)
Current Customer Situation
Ÿ Important business content is hidden in tables in your ERP
Ÿ Cumbersome reporting processes
Ÿ Reporting embedded in transactional processes is non-existent or inflexible
Description
Ÿ Embedded Analytics in the Business Warehouse deliver standard content that is
easily consumable by transactional users directly when needed to make important
decisions
Value Proposition
Ÿ Improve cash through visibility into and control over cash flows and forecasts to
manage cash, ensuring the enterprise has liquidity to fund its operating activities
Ÿ Improve order to cash processes through an increase of the financial visibility to
your customer base
Ÿ Enable the Dispute Manager to reduce DSO and increase customer profitability
Ÿ Get a 360° overview about the company’s financial situation
Outcome Opportunity
Ÿ Contextually answer questions when they arise: during the transactional process
Ÿ Improve decision making processes
SAP BusinessObjects BI solutions
SAP BI Foundation RDS

29. © 2013 SAP AG. All rights reserved. 29
Operational Reporting with SAP HANA
Current Customer Situation
Ÿ Business performance is affected by inability to perform timely reporting on
operational data stored in SAP ERP
Ÿ Reporting of operational data is too time consuming or impractical, resulting in
sub-optimal business decisions
Ÿ Extremely large volumes of detailed transactional data exist in operational ERP
systems, but access to up-to-date, summarized information is also crucial
Description
Ÿ This rapid-deployment solution enables real-time operational reporting with
access to massive amounts of detailed and summarized operational data to
increase productivity with flexible and graphical self-service analytics
Value Proposition
Ÿ Speed up operational reporting with best-in-class Business Intelligence, powered
by SAP HANA
Ÿ Instant insights into your financial and financial-oriented purchasing or data
provide a basis for optimal decision making
Outcome Opportunity
Ÿ Accelerated Reporting and Analysis
Ÿ Accelerated Period-End Closing Processes
SAP BusinessObjects BI solutions
SAP Profitability and Cost Management
SAP Predictive Analysis
SAP Net Margin Analysis

30. © 2013 SAP AG. All rights reserved. 30
HANA Live for Financials
Current Customer Situation
Ÿ No base for decision making, as data is spread all over ERP
Ÿ No predefined analyses models for Working Capital
Description
Ÿ HANA Live for Financials provides the content for sophisticated analyses, as well as
out-of-the box analyses around cash and invoice and goods received reconciliation
Value Proposition
Ÿ Rich content provision for controllers, treasurers, accountants, and financial
analysts, as well as Executives
Ÿ Combines all finance data to provide the basis for advanced analyses with SAP BI
Solutions
Ÿ Analysis across organizational hierarchies, time trends, and drilldown into
transactional details for root-cause analyses
Ÿ Specific applications out of the box, like working capital analysis to optimize KPIs
(like cash conversion) or goods/invoice receipts reconciliation
Outcome Opportunity
Ÿ Fact-based decisions for everyone
Ÿ Excellence across all finance processes
Ÿ Outperform your financial objectives
SAP BusinessObjects BI solutions
SAP Lumira (aka Visual Intelligence)
SAP HANA live applications

31. © 2013 SAP AG. All rights reserved. 31
Commodity Risk Analysis (HANA)
Current Customer Situation
Ÿ Measuring and reporting overall commodity position changes geographically
Ÿ Risk compliance analysis across commodities and locations
Ÿ Lack of a high-level overview of commodity exposures and financial derivatives
Description
Ÿ The solution provides your organization with instant visibility into commodity risk-
related information across multiple lines of business. This enables your business to
appropriately address commodity position risks at all levels.
Value Proposition
Ÿ Better decision making through a geographical overview of net open commodity
positions
Ÿ Efficient process through highlighted risk compliance across all commodities
Ÿ Minimize risk by analyzing commodity exposures and related financial derivatives
Outcome Opportunity
Ÿ Improve your visibility on commodity positions
Ÿ Keep compliance risk to a minimum
Ÿ Increase transparency by providing views on exposures with and without hedging
Ÿ Provide in-depth analysis of commodity positions by time period and location
SAP BusinessObjects BI solutions
SAP Commodity Risk Management
SAP Commodity Risk Analysis

32. © 2013 SAP AG. All rights reserved. 32
Fraud Management (HANA)
Current Customer Situation
Ÿ Revenue loss related to fraud
Ÿ Cost/results ratio of dealing with fraud
Ÿ Manual, inefficient, slow, and inaccurate investigation process
Description
Ÿ The solution provides real-time detection that leverages the power of HANA with alert
notification and management features for the fraud team, and helps minimize false
positives through real-time calibration and simulation capabilities
Value Proposition
Ÿ Perform analyses of fraud patterns based on historical data; design how fraud is
going to be detected
Ÿ Set up and fine tune detection criteria, using simulations and the calibration tool
provided within your department
Ÿ Run fraud detection and perform investigation on the resulting findings in real time
Outcome Opportunity
Ÿ Detect fraud earlier to reduce financial loss
Ÿ Improve accuracy of detection at less cost
Ÿ Prevent and deter fraud situations
SAP Fraud Management
SAP BusinessObjects BI solutions
SAP Predictive Analysis

33. © 2013 SAP AG. All rights reserved. 33
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